.One good can only be produced by diverting resources from other goods, and so by producing less of them. The PPF is also known as the production possibility or transformation curve. There is a surplus of the product. the production possibility frontier (the PPF, also called the production possibilities curve (PPC) or the "transformation curve") is a graph that depicts the trade-off between any two items produced. False; all else equal ... just click on the card to take it out of the box. The PPF assumes that the inputs are used at a constant rate. PPF is a graph or a curve indicating different production possibilities of two commodities with fixed resources or the inputs. Which of the following best describes one of three economic concepts illustrated by the production possibilities boundary? If there is an increase in the long term economic growth then production possibility frontier will: Shift inward; Shift outward; Production Possibility Frontier (PPF or PPC) PPF is the curve that shows the best (maximum) combinations of two outputs that an economy can produce given three assumptions: 1) Technology is fixed; 2) Resources are fixed; and 3) Resources are used at their fullest. QUESTION ONE [30] 1.1 For each of the following events, ceteris paribus, explain whether the production possibility frontier shifts inward, shifts outward or remains unchanged. ... ceteris paribus. 1.1.1 The discovery of coal. It is a graphical representation of the law of demand. You can also use your keyboard to move the cards as follows: The slope of the production–possibility frontier (PPF) at any given point is called the marginal rate of transformation (MRT).The slope defines the rate at which production of one good can be redirected (by re-allocation of production resources) into production of the other. To get out of a recession, we must produce at some point beyond our production possibilities frontier. b. d. more resources. Economic growth shifts a society's production possibilities frontier away from the origin: True (up and away) ... Ceteris paribus literally translated means, "buyer beware." https://www.khanacademy.org/.../v/production-possibilities-frontier Main Concept. What is PPF? Use a single diagram to moti. a) High speed steel b) Aluminum oxide c) Titanium aluminum oxide d) Polycrystalline diamond... Will an increase in average length of annual vacations cause the national economy's PPF to shift inward or outward? Use a single diagram to motivate your answer. Production Possibility frontier is also called as production-possibility boundary, production-possibility curve or product transformation curve. b. attainable, but the economy is inefficient. There is a shortage of the product. ceteris paribus:other things constant ... Production Possibility Frontier (PPF) If economic growth food occurs, so that it becomes possible to produce more output, the PPF shifts to the right and up. c. On the production possibilities frontier 95 percent of the labor force is employed. Moving along the PPF curve represents a change in the use of resources from one product to another. 1.1 For each of the following events, ceteris paribus, explain whether the production possibility frontier shifts inward, shifts outward or remains unchanged. d. To have economic growth, we must push the production possibilities frontier inward. b. inward shift of the PPF. 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